State Compensation Insurance Fund v. McMillan

¶1 The Montana State Compensation Insurance Fund (State Fund) appeals from an order entered by the Workers’ Compensation Court disallowing the State Fund’s subrogation claim. We affirm.

¶2 The issue on appeal is whether the State Fund’s subrogation interest is determined by the claimant’s third party judgment against the United States government, which was reduced for the claimant’s comparative negligence and resulted in a recovery which was less than his entire loss.

BACKGROUND

¶3 Lowell McMillan was severely injured in January 1987 when he was struck by a tree felled by a co-worker. McMillans…